Project Management: Risk Treatment Methods and Strategies

This article discusses various risk treatment methods and strategies in project management. It covers avoidance, sharing, transference, and acceptance of risk. The article also explains the difference between risk avoidance and risk acceptance.

Running head: PROJECT MANAGEMENT
PROJECT MANAGEMENT
Name of student
Name of university
Author’s note:

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Answer of Question 3:
1. The risk treatment that is used in the first part of the question is the Avoidance
method. This risk of inability of working with the Symbian phones is removed by
eliminating the integration of the app in the Symbian phones. If the app was
implemented in the Symbian phones, then the proper working of the app with the
Symbian phones could not be guaranteed as the development team does not
include the required skills for working with any Symbian based operating system.
2. The risk treatment method that should be used when any section of a project is too
complicated for the company to perform is the method of sharing. This is a self
insurance method for reducing or managing the exposure to risk by distributing
the task of any business syndicate (Aven et al. 2013). The risk retention pools that
are formed with the contributions of the participants are frequently used as the
method of self insure risks between multiple entities. The section that is too
complicated for a company to perform can be performed easily by any other
business or individual and the complication would be removed.
3. Yes, this method is the transference of risk to any other individual. The
transference is the risk management technique that is not commonly used in the
projects (Murray et al. 2013). The impact of the project is transferred and the risk
management to someone else. This would make the third part responsible for the
risk management and the delivery of the project without the risk and the company
would not have the burden of managing the risk (Gavrilescu et al. 2015). In the
situation in the question, if the project accidentally contravene the law then the
expert who is tasked with the duty would be responsible for managing the risk and
implement proper methods for mitigating the risk.

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4. The acceptance of risk occurs when any business acknowledges the fact that any
potential loss from any risk is not huge enough for warranting the expense of
money for avoiding the risk. It prevents the businesses from spending significant
money for the risks that would not impact severely (Charness, Gneezy and Imas
2013).
The avoidance of risk is considered as the elimination of the hazards, exposures
and the activities, which can negatively affect the assets of the organisation. A
strategy of risk avoidance is developed for deflecting possible threats for avoiding
costly and the disruptive consequences of the damaging event.

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References
Aven, T., Baraldi, P., Flage, R. and Zio, E., 2013. Uncertainty in risk assessment: the
representation and treatment of uncertainties by probabilistic and non-probabilistic methods.
John Wiley & Sons.
Charness, G., Gneezy, U. and Imas, A., 2013. Experimental methods: Eliciting risk
preferences. Journal of Economic Behavior & Organization, 87, pp.43-51.
Gavrilescu, M., Demnerová, K., Aamand, J., Agathos, S. and Fava, F., 2015. Emerging
pollutants in the environment: present and future challenges in biomonitoring, ecological
risks and bioremediation. New biotechnology, 32(1), pp.147-156.
Murray, I.R., Foster, C.J., Eros, A. and Robinson, C.M., 2013. Risk factors for nonunion after
nonoperative treatment of displaced midshaft fractures of the clavicle. JBJS, 95(13), pp.1153-
1158.

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